Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Q3 2018 Earnings Presentation
13 slides from Delek Us's earnings presentation, Nov 7, 2018
Slide 1: Third Quarter 2018 Earnings Call
EX 99.2 Delek US Holdings, Inc. Third Quarter 2018 Earnings Call November 7, 2018
Slide 2: Disclaimers - Forward Looking Statements
Disclaimers Forward Looking Statements: Delek US Holdings, Inc. (“Delek US”) and Delek Logistics Partners, LP (“Delek Logistics”; and collectively with Delek US, “we” or “our”) are traded on the New York Stock Exchange in the United States under the symbols “DK” and ”DKL”, respectively. These slides
Slide 3: 3Q18 Highlights
3Q18 Highlights Segment Contribution Margin • Strong performance in 3Q18 $400 319.5 $300 180.1 • Reported diluted EPS of $2.03 and adjusted EPS $2.02 $200 43.1 $100 30.9 13.5 15.3 • Net Income of $179.8 million and adjusted EBITDA $0 $310.6 million ($100) (24.3)(17.2) Refining Logistics Retail Corpo
Slide 4: 3Q18 Highlights – Cash Flow
3Q18 Highlights – Cash Flow • Strong cash flow generation in 3Q18 Total Consolidated Cash Flows supported investment in the business 1,600 and returning cash to shareholders 367.9 1,400 • Operating cash flow from continuing ops $367.9 million (182.4) 1,200 • Capex and investments $85.5 million 1,132
Slide 5: Delek's Capital Allocation Framework
Delek’s Capital Allocation Framework Balance the following objectives using a rigorous and disciplined capital allocation program to create long-term value for our shareholders: • Invest: Capital allocation program focuses on safety, maintenance, and reliability as priority • Grow: Maintain financia
Slide 6: Krotz Springs Refinery - Alkylation Project
Krotz Springs Refinery- Alkylation Project • Alkylation unit with 6,000 bpd capacity Change in Yields, in 000 bpd • Approx. $113.0 million estimated capital costs with $82.0 million spent as of Gasoline Diesel/Jet Heavy Oils Other 8.7 September 30, 2018 11.1 8.0 8.0 • Improves refinery flexibility 2
Slide 7: Growing Midstream - Big Spring Gathering System
Growing Midstream - Big Spring Gathering System Delek US’ Gathering Helps Control Crude Oil Quality and Costs into Refineries • 250-mile gathering system, 300Kbpd • Allows Delek to get closer to wellhead throughput capacity to control crude oil quality and cost • Currently more than 200,000 • Provid
Slide 8: Guidance
Guidance 4Q18 Guidance Low High Total Crude Throughput 275,000 285,000 Realized Midland-Cushing Discount, $/bbl $10.00 $10.50 Consolidated Operating Expenses, $ in millions $160.0 $170.0 Consolidated G&A, $ in millions $64.0 $69.0 Consolidated Depreciation and Amort., $ in millions $50.0 $52.0 Net i
Slide 9: Significant Cash Returns to Shareholders
Significant Cash Returns to Shareholders Focus on returning cash to shareholders while maintaining financial strength Cash to Shareholders (2)(3) • Target competitive dividend level for a growth company that can be supported through a cycle • Announced a 1 cent dividend increase to $0.26/qtr • 2Q18
Slide 10: Questions and Answers
Questions and Answers Significant Organic Focus on Long-Term Growth / Margin Shareholder Returns Improvement Opportunities An Integrated and Permian Focused Diversified Refining, Financial Flexibility Refining System Logistics and Marketing Company Complementary Logistics Systems
Slide 11: Non-GAAP Reconciliations of Adjusted Net Income
Non-GAAP Reconciliations of Adjusted Net Income Three Months Ended September 30, Reconciliation of U.S. GAAP Net Income (Loss) per share to Adjusted Net 2018 2017 Income (Loss) per share (Unaudited) Reported income (loss) per share $2.03 $1.29 Adjustments, after tax (per share) Net inventory valuati
Slide 12: Non-GAAP Reconciliations of Adjusted EBITDA
Non-GAAP Reconciliations of Adjusted EBITDA Three Months Ended September 30, Reconciliation of Net Income (Loss) to Adjusted EBITDA 2018 2017 (Unaudited) Reported net income (loss) attributable to Delek $ 179.8 $ 104.4 Add: Interest expense, net 29.8 33.2 Loss on extinguishment of debt 0.1 Income ta
Slide 13: Non-GAAP Reconciliation of Potential Alkylation Project EBITDA
Non-GAAP Reconciliation of Potential Alkylation Project EBITDA(1) Reconcilation of Forecast U.S. GAAP Net Income (Loss) to Forecast EBITDA for Alkylation Project ($ in millions) Forecasted Range Forecasted Net Income $ 24.1 $ 27.3 Add: Interest expense, net - - Income tax expense 14.0 15.8 Depreciat